It is the spectre of all Keynesians and fiat knights: deflation. After 25 years, Japan now seems to have managed to overcome its deflationary phase. Noticeable real wage growth is helping to slowly raise price levels again. It is important in the fiat world that the robbery by inflation in favor of the state works smoothly. The world is drowning in debt, which is nominally valued, which is why it is absolutely necessary to expand the money supply and let prices rise. Japan is also structurally insolvent and is now trying to pull itself out of the mess using the old fiat logic. The implied rise in interest rates is likely to reassess the global balance of power on the credit markets. The European Central Bank in particular is likely to be keeping a wary eye on these developments.